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Video for August 11th, 2008 (5 min): Dollar Continues Climbing vs Key Rivals, After Overnight Softness JPN Machinery Orders Dips 8.9% on the Year in June In Japan, orders for machinery tools took a significant step backwards in June, declining 8.9% on the year compared to a 2.5% decline in May. RBA Quarterly Statement Signals Rate Cuts Ahead The Reserve Bank of Australia's quarterly statement signaled rate cuts. There have been forces aligned to produce a "significant moderation in the domestic economy." The central bank sees "scope to move to a less restrictive monetary policy." AUD/JPY - Aussie Dips Again vs Yen to Start Week, Find Support
In the couple of hours following the Sunday open the Aussie-Yen pair fell to 96.90, the lowest since May 12th. The Aussie found some support there and retracted, and then settled at the 97.60 area. The pair has seen a 380 pip slide since last Monday's high at 100.75 to today's low. GER Wholesale Price Index Jumps 1.4% in July In Germany the wholesale price index jumped 1.4% in July compared to June, and grew 9.9% on the year. That is the fastest annual rate of increase since November 1981. The data implies further inflationary pressure in the pipeline for the German economy. EUR/USD - Euro Hits 5 1/2 Month Low vs Dollar
The Euro-Dollar hit a 5 ½- month low versus the Dollar by opening Sunday near 1.49. The Euro recovered overnight, climbing 160 pips from that low, boosted by the German price data. At 1.5080, Dollar bulls surged once again. The Euro is expected to show growth turning into contraction in the 2nd quarter which will weigh on the ECB.
UK Producer Prices Continue High Pace, Some Cooling in Output Prices
Prices charged by UK factories rose 10.2% on the year in July, setting a fresh record high for the index which goes back to 1986. In monthly terms, prices grew 0.4%, slower than the rate in June. Most of the change to the index reflected rises in petroleum and chemical products. The input price index for materials and fuels purchased by manufacturing rose 30.1% on the year. Between June and July, they were up 0.2%.
UK Trade Balance Widens to 77 Billion Pounds
The UK trade deficit widened to £7.7 billion in June, larger than forecasts. Imports increased by £1.2 billion outpacing the growth in exports of £0.9 billion. The deficit with non-EU countries grew between May and June, while the deficit with EU countries narrowed. GBP/JPY - Pound Weaker Against Yen
The Pound-Yen pair started the week falling to a downtrend support. The pair touched an intra-day low at 209.80 as stocks in Shanghai fell 5.2%. The Sterling shortly after rebounded back to where it started the week off, but remained pressured throughout New York trading CAN Housing Starts Dip in July In Canada, housing starts decreased to an annual rate of 187K in July. That was below June's level and undershot forecasts. CAN New House Price Index Slows to Annual Pace of 3.5% The Canadian New Housing price index rose 0.1% in June. The annual pace of 3.5% growth is the slowest since March 2002, and have seen a clear downtrend the last 4 months. USD/CAD - Loonie Back Testing 1.07
The US Dollar-Canadian Dollar pair dipped overnight to 1.0610 but recovered that ground to trade back near 1.07 by afternoon NY trading. Oil prices fell for another day despite the tension between Russia and Georgia, sliding below $114-a-barrel and paving the way for yet another Wall Street rally. Upcoming ReleasesTonight, the UK comes out with its BRC Retail Sales Monitor and RICS House Price Balance. Japan releases its measures of corporate inflation, while Australia posts its NAB Business Confidence. Overnight, Japan will also unveil data on industrial production and consumer confidence. Also overnight, the UK will post its CPI and RPI, along with a house price index. Tomorrow morning, Both Canada and the US will release trade balance figures. |
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